Divorce can have a significant impact on wealth, both during and after the marriage has ended. Divorce is a personal financial decision that can involve many factors such as income, assets, debts, lifestyle changes, tax consequences, and more. It’s important to understand how divorce could affect your finances before you make any decisions.
Marriage and divorce can both have a major impact on wealth. Marriage may provide the opportunity to build a joint financial foundation, while divorce can result in significant financial stress and loss. In general, it is important to consider all aspects of your current finances when considering marriage or divorce, and how it might affect your future wealth.
How Does Your Accumulation Of Wealth Get Handled In A Divorce
Marriage dissolution is in more ways similar to business dissolution, especially when it comes to property and assets. In a case of divorce, a divorce lawyer will consider the financial holding of the divorcing couples, identify and evaluate it, and value the assets and properties while also distributing the assets among affected parties.
In the event of a hefty financial settlement between the divorcing couple, each of the steps involved in the overall process of dissolution may be more complicated, resource-intensive, time-consuming, and may often take about a year to resolve.
The accumulation of wealth affects divorce proceedings in a number of different ways. Below, we will take a closer look at the different factors of marriage and divorce’s impact on wealth.
Marital Agreements Are Often a Factor
Wealthy couples are more likely to have a prenuptial agreement
or postnuptial agreement in place. These agreements are often times put in place to protect individual assets, protect businesses, pre-determine alimony, or also safeguard large inheritances and other assets in the event of divorce. When negotiating during the divorce, an attorney will be guided by the terms of the agreement using it as a guideline in asset distribution. A prenuptial agreement can however be challenged in part or whole, this depends on the validity, fairness, and whether or not the agreement is legally enforceable.
Dividing Business Interests, Property, and Other Assets
Wealthy people often hold their wealth in the form of business ownership, business interests, investments, intellectual property, tax shelter, real estate holding, international holdings, limited partnerships, high-value collections, and more. However, all of these assets must be properly traced and valued by the services of a legal professional to best determine the full picture of the couple’s wealth. Only when the full picture of the couple’s wealth is understood can the asset and property division process begin.
A Team Of Experts May Be Required
Couples, depending on the level of wealth may need the services of accounting and tax professionals, forensic accountants, financial advisors, appraisers, and real estate experts. In high-asset divorce cases, the listed experts will be required to work in conjunction with divorce attorneys and their legal teams, legal experts in business, real estate, intellectual property, trusts and estates, and more.
Spousal Maintenance Arrangements
Spousal maintenance (this is also known as alimony or spousal support) is one of the major issues in divorce and is known to be a major bone of contention, especially for high-profile divorce cases. Demand for spousal support can also affect how properties are shared and distributed. In the event one of the partners seeks to maintain complete control of a business, the other partner may be entitled to an additional payment.
Divorce Cases and the Public Eye
Most high-profile divorce cases are settled outside the court. In the event of such cases as this, out-of-court settlements are made to prevent public scrutiny. In addition, there are also some legal ways to prevent public access to such cases thus making the process a private process. However, in the case of litigated divorce cases, details of such cases are likely to be publicized.
Turn to Fennell, Briasco, & Associates For Help With Your Divorce Litigation
No matter the situation, divorce can be a complicated, stressful process. But with the assistance of experienced and knowledgeable attorneys like those at Fennell, Briasco & Associates, you can rest assured knowing that your case is in good hands.
Our team of lawyers will work together to protect your rights and interests while taking into consideration the financial and legal implications of divorce on your wealth. We understand that marriage and divorce both have a great impact on financial stability, so we will help you navigate the process with sensitivity and expertise to ensure the best possible outcome. Contact us today to learn more about how we can help you make informed decisions during your divorce proceedings.